Bitcoin price could be hit by nearly $1 billion in options expiring this week

Abstract: According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, has been fluctuating in a narrow range over the past week, but this trend may change this week.

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, has been fluctuating in a narrow range over the past week, but this trend may change this week.

According to data from crypto data provider Skew, nearly $1 billion worth of Bitcoin options will expire on Friday, accounting for 70% of all open Bitcoin contracts.

According to historical experience, when the expiration date of the crypto derivatives market approaches, the price of the crypto spot market tends to fluctuate greatly. Considering that the current size of the Bitcoin open interest market has increased a lot compared to before, the price of Bitcoin may end its long-term sideways trend this week.

The Bitcoin market will also be affected by the global stock market this week. In recent times, the correlation between Bitcoin and the S&P 500 index has been increasing. As happened last Monday, the stock market crash due to concerns about the impact of the second wave of the new crown epidemic affected the crypto market. If this happens again this week, the price of Bitcoin will also be affected.

Chris Thomas, head of digital assets at Swissquote Bank, told Coindesk: “The key thing to watch in the next few weeks is the impact of the coronavirus on related stocks. If the market reacts very negatively to the increase in coronavirus cases, we may see more panic, which may also push Bitcoin lower.”

From the technical indicators, Bitcoin has been trading in a symmetrical triangle for some time, and the chart shows that it will break through this week. Another technical indicator, Bollinger Bands, also shows that the bandwidth of the band is currently at its narrowest point in the near future, and it is very likely to break through in a short time.

In addition, on-chain indicators show that the current operation of the Bitcoin blockchain network is relatively normal. After the last difficulty adjustment, the full-text hash rate has remained stable at around 105 EH/s.

Image source: pixabay

AuthorLiang Che

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